A fleet management application is a software that allows you to track your vehicle or shipments in real time which can be a really useful tool for your business.
If you have a business that relies heavily on transportation then this software can help you not only track your vehicles, but also give optimized routes, data analytics, ways to optimize cost and fuel efficiency and also generate reports to highlight the performance of the fleet.
Despite its obvious benefits, fleet managers are skeptical to adopt it due to concerns related to its cost.
Let us address these issues and shed some light on how much does it cost to own a vehicle tracking software.
The price of such a software would actually depend on the size of the business and the number of vehicles you want to track. However, it will also vary on the number of features you to choose to have in the software.
A basic software to track about 10 vehicles would be available in a few thousand dollars.
You can choose to buy the software or even rent it.
Before we jump to the actual cost let us see what are the factors that decide the price of the software: –
1) Vendor – Since there are several companies that provide Fleet Management Software with different features, the prices will also vary.
2) Size of your fleet – Most of the times you are billed based on every vehicle you own and so the total number of fleets you own will affect the cost.
3) Version and features you want to own – Whether you want a basic software with no frills and fancies or you want a hi-tech software application with all the latest upgrades will also fluctuate the price.
4) Training – The type of training you intend to provide to the employees of your company for this software will also have an impact on the total installation cost.
5) Type of device – Whether you want a wired device that will be individually installed in each vehicle and will be connected to the engine or you want a plug and play device that can be attached on the dashboard will decide how much you will have to pay.
Ideally, for heavy-duty vehicles, wired devices are better.
6) Licensing or purchasing– The final decision that will fix the price of the software is whether you want to purchase the entire software application and devices or just purchase the license.
Now that we have some idea about the factors that influence price, we will also have a look at what might be the average cost of such a software.
Basic GPS tracker might cost you around $10-$15 monthly for every vehicle you own and many vendors do not charge an installation fee.
Basic Vehicle Fleet Management Software (with few features like logging work hours, fuel management and the like) would cost you around $5 – $25 monthly for every vehicle and you can get it installed either free of cost or for a one-time payment of $50 -$100.
Advanced Fleet Management App can include features beyond the necessary like tool management, parts management as well as accident and log management and will cost you around $30-$55 per vehicle per month. Apart from this, some vendors may claim an installation fee of $100- $150 as well
As you can see that the prices are pretty reasonable but there are still a few myths regarding the price that surrounds this Fleet Management solution which prevents managers from buying them.
We have listed a few of them below: –
Q1) Only big firms need such software?
This is the biggest myth that is associated with such a vehicle tracking system.
There are some issues that bother the owners of small and big businesses alike like theft and accident.
The price of the application is relative to the scale of operations and hence every business owner can use it to promote the growth of their business.
Q2) Small companies cannot afford a complex vehicle tracking software?
Again, this is not the case.
First of all, you don’t necessarily need complex software and just build one with basic critical features and then expand them as and when your business grows.
If customized correctly, the software can help your business for years to come.
So, the cost of a software is proportional to your need and the scale of the business you are operating but there are definitely choices available to suit all types of business and needs of the fleet manager.
It is up to you to choose the best fleet management software based on your needs and future growth plan.